Zep Inc. Announces 5% Workforce Reduction Amid Market Challenges

On December 8, Zep Inc. announced a 5 % reduction in non‑sales personnel in response to a sharp decline in customer orders and persistent high raw‑material costs.

The downturn began in October, prompting a new round of workforce cuts in November, with most reductions slated for completion by the end of the second fiscal quarter. The company will record a restructuring charge of approximately $1.9 million in the first fiscal quarter of 2009, ending November 30.

In addition, Zep has instituted an immediate hiring freeze across all non‑sales roles.

John K. Morgan, Chairman, President and CEO, said, “Facing pronounced economic headwinds, weaker‑than‑expected volumes, and elevated material costs, we made the difficult decision to trim our workforce. While challenging, this move aligns with the broader downturn we’re experiencing. We remain committed to hiring qualified sales talent as opportunities arise.”

With FY 2008 net sales exceeding $575 million, Zep offers a broad portfolio that includes antibacterial and industrial hand‑care products, cleaners, degreasers, deodorizers, disinfectants, floor finishes, sanitizers, and pest‑control solutions. Its brands—Zep, Zep Commercial, Zep Professional, Enforcer, National Chemical, and Selig—have stood the test of time, some thriving for over 70 years. The company is headquartered in Atlanta.